London – Cabinet Office – 17th April 1949
The telegram from Delhi landed on Prime Minister Attlee's desk like a slap across the face. Full settlement of £382 million by month's end, or face crippling tariffs on all British exports to India. No negotiation, no compromise, just a cold ultimatum.
Attlee stared at the document for a long moment before looking up at his assembled ministers. Chancellor Cripps looked like he hadn't slept in days. Foreign Secretary Bevin was rubbing his temples, already anticipating the headache this would cause.
The mood in the Cabinet room was grim but resigned. Delhi once again.
"Well, gentlemen," Attlee said quietly, "it seems Prime Minister Mehra didn't appreciate our technology restrictions."
Cripps let out a bitter laugh. "Another bloody crisis with Delhi. £382 million in two weeks? Our treasury can't handle that kind of immediate outflow without serious consequences."
"Christ, not again," Bevin muttered under his breath. "Every month it's something new with that man. First those financial policies, now this."
"And heavy tariffs if we refuse" Attlee sighed bitterly.
By now, Britain have more or less became numb to the shockwaves that Arjun have been making ever since he took office.
"Though tariffs will harm them as well, it'll be much more crippling to us, as we'll be losing our Indian market access to others," Bevin replied flatly. "And given we're barely managing our recovery as it is, we can't afford to lose it, not now."
Sir Edward Bridges, who had handled the request for machinery procurement, spoke. "Prime Minister, while we did agree to export the civilian/lab purpose instruments, we had only denied the strategic ones, including the advance versions of those we agreed for.
But it looks like Mehra is not content with just that much. And so this is likely what caused all of this."
"What's wrong with controlling the access of military grade technology? Don't many nations do it? Even India would have done the same if they were in our place", Attlee spoke with some anger.
He rubbed his forehead, feeling every one of his sixty-six years. "India's position has changed, gentlemen. One need to be aware that they're now a veto member of UNSC. And antagonising them means we risk India blocking any future British proposals and decisions".
"I'm starting to think we should have just given India the damned equipments in the first place," Cripps said dryly. "But whatever. The immediate question is how we handle this without completely destroying our fiscal position."
Attlee nodded slowly. "The problem is that he's doing it legally, using our own commitments and agreements. We can't even call it unreasonable without looking like we're reneging on legitimate debts."
The room fell quiet as the implications sank in. They were dealing with someone who understood exactly how to use economic pressure as a weapon, and who wasn't hesitant to do so when his objectives were blocked.
"So, what do we do?" Cripps asked.
"Call for the Negotiations of course," Attlee replied simply. "We simply can't afford to pay. Let's see if he reverts his decision if we sold him these machineries."
London – India House – Same Day
Raghunath Narasinha received the urgent call from 10 Downing Street within hours. The British wanted to talk, which meant they were ready to concede. He immediately placed a secure call to Delhi.
"Prime Minister," Narasinha said when Arjun came on the line, "they're requesting immediate negotiations. The ultimatum has them cornered."
"Good," Arjun's voice was calm but satisfied. "What are they offering?"
"They haven't made formal offers yet, but the urgency suggests they're prepared to give the tools that we asked for. How do you want me to handle it?"
"They'll provide everything at cost price. If they ask about the initial premiums, then reject them firmly, and say that we'll purchase them at cost price, no more profits. That's their penalty for thinking they could constrain our development."
Narasinha smiled. "And if they want something in return?"
"Hmm…just iterate our position. That as a 'democracy', we are tasked with preventing the expansion of communism. But at the same time, our non-alignment remains absolute. It costs us nothing and gives them political cover."
London – 10 Downing Street – 18th April, 1949
The meeting was tense from the start. Attlee, Bevin, and Cripps sat across from Narasinha in the Prime Minister's study, looking like men who'd been backed into a corner they couldn't escape.
"High Commissioner," Attlee began stiffly, "we've reviewed Delhi's demands. The immediate debt settlement is simply not feasible. £382 million in two weeks would require us to liquidate critical reserves we cannot spare."
Narasinha remained calm. "Then what are you proposing, Prime Minister Attlee?"
Cripps leaned forward. "We're prepared to provide all the equipment on your original list, including the advanced specifications we initially declined. Full delivery by the agreed timeline."
"At what cost?" Narasinha asked directly.
"Standard pricing," Bevin replied. "But given the…current international situation, particularly with NATO's recent formation and escalating Cold War tensions, we must insist on formal assurances regarding the use of dual-use technologies.
After all, western democracies are being increasingly cautious about advanced equipment that could potentially serve military applications."
Narasinha raised an eyebrow. "You're asking for guarantees about how India uses equipment it purchases legitimately?"
"The geopolitical reality has changed, High Commissioner," Attlee said firmly. "With the Soviet threat and the formation of defensive alliances, all NATO members are now required to exercise greater scrutiny over technology transfers.
We need India's formal commitment that these instruments will serve educational and civilian research purposes exclusively."
Narasinha considered this. The British were trying to save face by making it seem like a principled technology transfer rather than capitulation to economic pressure. It was actually useful for India since it provided cover for acquiring advanced equipment without appearing threatening.
"Prime Minister Mehra would be willing to provide such assurances," Narasinha said carefully. "India's commitment to using these instruments for educational and civilian research purposes can be formally stated. Our goal is scientific advancement and industrial development.
Not to mention, one should also be aware about India's position on communist expansion in Asian region."
Attlee nodded, looking like a man who'd managed to avoid complete disaster. "Very well. We'll expedite the equipment shipments and restructure the debt payments. The formal agreements can be drafted immediately."
Brits were finally relieved after all this.
Narasinha nodded, and finally left after signing the formal agreements.
As he left Downing Street, Narasinha smiled slightly. Britain had found a way to comply with India's demands while maintaining some diplomatic dignity. They'd get their advanced equipment without paying the crushing immediate debt, and both sides could present this as principled cooperation rather than economic coercion.
Delhi – Prime Minister's Office – Same Evening
"London found a face-saving solution," Narasinha reported to Arjun. "They'll provide all equipment, including the advanced versions, in exchange for formal assurances about civilian use and the communist statement."
Arjun's voice showed satisfaction. "Clever of them. They avoid admitting they couldn't pay while still giving us what we need. The civilian use assurance is meaningless since they have no way to monitor or enforce it."
"Exactly. We get our precision instruments, they get political cover, and everyone can claim victory."
"Great work, Narasinha -ji. Now I'll need your help to ensure smooth operations from our end regarding the deliveries of the requested cargo."
After the call ended, Arjun leaned back in his chair. With his thoughts wandering towards the future plans.